Stress test results moved to Thursday

Due to the debates that are going on between the banks and the Fed, the presentation of results to the public will be delayed by 3 days from the original May 4 plan to Thursday, May 7. It also seems to have been decided now that the public would find out not only the general health of the financial system but the capital need of each of the 19 banks.

Regulators are expected to disclose potential loss estimates for each individual bank, a government official said. In addition, the results will be tallied across the banks to give the public a better picture of the health of the banking industry. U.S. officials will disclose the loss estimates for certain loan categories and the banks’ ability “to absorb those losses” under more-adverse economic scenarios.

From the banks reported to need more capital than the others, I’m not sure I understand how or why Bofa and Citi are trying to deny their capital needs when they are simply 2 of the most troubled banks.

Requiring all banks to take in more capital would have been simple if there was no threat of the strings being attached (read: government intervention). Jamie Dimon, who is one of the well-positioned banks, admitted to the onerousness of having government interfere in their business. But with the damage that has been done and perhaps, that which is to come, the stress test has begun to look like more messy that it might really be.

I’m still not sure how the release of results are best approached. Hmm.